BESS Moratoriums: What Michigan’s Pause Means for Green Tech

Most communities don’t hit the brakes on clean energy because they hate it. They hit the brakes because they don’t feel in control.

That’s exactly what just happened in Oshtemo Township, Michigan. After a utility-scale battery energy storage system (BESS) developer sized up the area for a new project, the township board voted for a one-year moratorium on new battery storage facilities.

This matters because BESS isn’t a niche technology anymore. It’s the backbone that lets renewables like solar and wind reliably power homes, factories, and data centers. When local governments start pausing projects, it’s a signal: the technology’s moving faster than zoning, safety rules, and public understanding.

Here’s the thing about this Michigan case: it’s not just a local planning story. It’s a lesson in how green technology, policy, and community engagement need to work together—and what developers, utilities, and climate-focused businesses can do right now to avoid getting blindsided by similar moratoriums.

---

What Happened in Oshtemo – And Why It’s Bigger Than One Township

Oshtemo Township (population around 23,000) enacted a one-year moratorium on approving new BESS facilities after discussions with NewEdge Renewable Power, a greenfield developer that’s built a multi‑gigawatt portfolio of renewable projects.

The core issue wasn’t that the township was anti-storage or anti-renewables. The problem was simpler: there were no BESS-specific zoning standards on the books. When that happens, boards typically feel they have two options:

• Approve projects using outdated or improvised standards (and hope nothing goes wrong), or
• Pause approvals while they write clear rules.

Oshtemo chose the second route. From a local policymaker’s perspective, it’s the safest move. From a developer’s perspective, it’s a year of uncertainty and potential sunk cost.

Zoomed out, this fits a national pattern. Across the US, as battery storage scales up to hundreds of megawatt-hours per project, more counties and townships are saying: “Not until we understand the risks, benefits, and rules.”

For anyone building or financing green technology, that’s not a minor speed bump. It’s a gating factor.

---

Why Communities Are Hitting Pause on Battery Storage

Local moratoriums on BESS almost always come down to risk perception + information gaps. The technology is mature enough for grid-scale deployment, but public understanding is several years behind.

The main drivers behind moratoriums

Here’s what typically pushes a township toward a temporary ban:

1. Lack of zoning standards
   If your code covers “substations” and “solar farms” but never mentions battery energy storage, staff don’t know how to classify a project. That regulatory vacuum makes boards nervous.

2. Safety and fire concerns
   High-profile BESS fires—even if rare relative to the number of deployed systems—tend to dominate local conversations. Residents worry about:

   • Thermal runaway and fire behavior
   • Toxic fumes in a worst-case scenario
   • Proximity to homes, schools, or wells

3. Land use and aesthetics
   Utility-scale storage is usually sited in rural or semi-rural areas. People care about views, noise, and what happens to property values if a “battery farm” appears next door.

4. Trust and process issues
   When residents first hear about a project from a developer’s glossy rendering instead of from their own township, trust erodes fast. Moratoriums are one way boards buy time and signal they’re listening.

The irony? Battery storage is one of the key tools for decarbonizing the grid and enabling more renewables. But if developers and planners treat community engagement as an afterthought, they increase the odds that projects get stalled right when we need them most.

---

How Smart Communities Turn Moratoriums Into Better Policy

A moratorium can be either a blunt “stop sign” or a structured pause to build a stronger framework. The difference is what happens in the months that follow.

The most effective townships and counties use the pause to do three things well:

1. Build BESS-specific zoning and siting standards

Instead of squeezing BESS into outdated categories, they create clear rules on:

• Permitted zones (industrial, agricultural, commercial, etc.)
• Setbacks from homes, schools, wells, and critical infrastructure
• Height, fencing, and landscaping to reduce visual impact
• Size thresholds (e.g., streamlined review under a certain MWh; special use permit above it)

This gives developers a clear playbook: here’s where storage fits, here’s what you need to design around.

2. Codify safety and emergency response requirements

Modern BESS projects already incorporate sophisticated safety systems. But communities are right to ask, “What exactly happens if something fails?” Strong ordinances address that in black and white:

• Required UL-listed and NFPA-aligned battery systems
• Fire detection, gas detection, and early warning systems
• Minimum separation distances between containers to reduce fire spread risk
• Detailed Emergency Response Plans (ERP), approved by the local fire department
• Annual joint training or drills between the project owner and first responders

When residents see that their fire department has a plan and training, the fear factor drops substantially.

3. Set expectations for ongoing monitoring and community benefits

Good rules go beyond construction:

• Noise and lighting limits with measurable thresholds
• Regular reporting on system performance and incidents
• Decommissioning plans and financial assurance (so projects aren’t abandoned assets in 25 years)
• Voluntary community benefit agreements, such as:
  • Road improvements
  • Funding for local emergency services
  • Educational partnerships with schools on green technology

Moratoriums that end with this level of clarity don’t just unlock one project. They create a stable environment for a whole pipeline of storage and renewable builds.

---

What BESS Developers Should Do Differently (If You Want Fewer Moratoriums)

Most companies get this wrong: they treat local policy and community engagement as a box-ticking exercise, then act surprised when boards push back.

If you’re planning a utility-scale BESS in 2026–2027, here’s a better playbook.

Engage before you engineer the project

By the time you’ve optimized your site layout and interconnection, you’re emotionally and financially committed. That’s when pushback hurts most.

A smarter sequence:

1. Policy scan first
   Map the township/county zoning code, comprehensive plan, and any past actions on solar, wind, or storage. If BESS isn’t defined, assume you’ll need to help write the rules.

2. Informal conversations early
   Meet with planning staff and at least one board member in a work session context, not a public hearing. Ask what concerns they’ve heard and what information they need to feel comfortable.

3. Co-design the process
   Offer to support a task force or working group that includes:

   • Planning staff
   • A board or council representative
   • Fire and EMS
   • A resident or neighborhood rep

You’re not trying to control the process—you’re trying to make sure it doesn’t default to “we’re not ready, so we’ll say no.”

Lead with transparency on safety, not just megawatts and megawatt-hours

A slick slide deck about 200MW / 800MWh capacity won’t move residents. What does move them:

• Clear, jargon‑free explanation of how lithium-ion or alternative chemistries work
• Historical incident rates vs other infrastructure (e.g., gas pipelines, substations)
• Concrete design choices you’re making: spacing, fire barriers, ventilation
• The exact steps in your emergency response protocol if sensors detect abnormal behavior

I’ve found that putting the fire chief and your safety engineer on the same stage, answering questions directly, builds more trust in 30 minutes than any brochure.

Use AI and digital tools to support, not replace, engagement

Since this post is part of our Green Technology + AI series, let’s address the role of AI here:

• AI for siting analysis: You can use AI to model optimal sites that avoid sensitive receptors, flood zones, and high-risk wildfire areas.
• AI for grid impact simulations: Show, with data, how your BESS will reduce curtailment, support reliability, and cut peak emissions in that specific region.
• AI chatbots for resident Q&A: Deployed carefully, they can answer common questions 24/7 and log what people are most worried about.

What AI can’t do is replace face-to-face trust-building. Use it to make your data clearer and more local, not as a shield between you and the community.

---

Turning Storage Projects Into Local Climate Wins

Battery storage projects are easiest to advance when residents understand what’s in it for them, beyond an abstract climate benefit.

Here’s how to connect BESS to tangible local outcomes:

Connect storage to local reliability and costs

You’re not just installing a big battery; you’re:

• Helping the local grid ride through storms and outages more gracefully
• Shaving peak demand, which can stabilize or lower long-term grid costs
• Supporting more local solar and wind, which reduces reliance on imported fossil energy

When people realize a BESS can mean fewer blackouts in extreme weather and less exposure to volatile gas prices, the project stops feeling like an imposition and starts looking like an upgrade.

Tie into broader green technology and economic development

Storage isn’t just climate infrastructure; it’s industrial strategy.

Townships and counties can:

• Market themselves as clean energy hubs, attractive to data centers, advanced manufacturing, and tech companies with net-zero commitments
• Partner with community colleges and unions to build local training pipelines for battery maintenance, electricians, and controls technicians
• Pilot AI-driven microgrids that use BESS to optimize local energy use across municipal buildings, schools, and water facilities

The communities that lean into this framing—“we’re using green technology to build our economic future”—tend to craft better, more durable policies than those stuck in a reactive posture.

---

What This Means for Your Next Green Technology Project

The Oshtemo Township moratorium is a warning shot, but it’s also an opportunity. When local governments pause BESS approvals, they’re not rejecting clean energy. They’re asking for clear rules, credible safety plans, and a real seat at the table.

If you’re a developer, utility, or climate-focused business, the path forward is straightforward:

• Treat policy and community engagement as core project work, not a late-stage hurdle.
• Bring data, safety expertise, and local benefits into the conversation from day one.
• Use AI and digital tools to model impacts and explain complex systems in plain language—but keep real humans front and center.

Green technology will only scale at the speed of local trust. The faster we align storage projects with community priorities, the fewer moratoriums we’ll see—and the quicker we’ll build the resilient, low-carbon grids that 2030 and 2050 targets actually require.

If your team is planning a BESS or broader clean energy project and you’re worried about local pushback, now’s the time to rethink your approach. The technology is ready. The question is whether your engagement and permitting strategy are ready too.